Arbitrum (ARB) Price Plunges Over 30% in 24 Hours
Arbitrum (ARB) has seen a drastic drop in price, tumbling more than 30% in the past 24 hours. This massive decline can be attributed to its strong positive correlation with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), both of which have experienced significant drops to multi-month lows recently. As of now, the Layer 2 (L2) token is trading at an all-time low of $0.44.
Arbitrage Drops by Double Digits, Traders Counting Losses
While ARB’s price is on a downward trend, its daily trading volume has surged. Currently standing at $589 million, the volume has increased by 151% in the past 24 hours. This opposite movement between price and volume indicates a clear bearish bias towards the L2 token.
With surging trading volume and falling prices, many investors are selling off their assets due to negative market sentiment. The decline in volume signals a sustained downtrend driven by heavy selling pressure. The double-digit price decline in ARB has also impacted derivatives markets, with trading volumes spiking over 200% while open interest dropped by 30%.
Open interest in altcoin futures now sits at $109 million, the lowest level since October 2023, pointing towards a bearish sentiment in the derivatives market. Buy liquidations have also surged, reaching $2.01 million, as traders were forced to liquidate positions due to the falling prices.
ARB Price Forecast: Potential Rebound Ahead?
Despite the current downward trajectory, indicators like the Relative Strength Index (RSI) and Money Flow Index (MFI) suggest that a rebound may be imminent for ARB. The RSI is at 15.96 and the MFI at 3.53, indicating oversold conditions and a possible positive correction in the near future.
However, the bearish sentiment against L2 tokens remains strong, as evidenced by the significant number of liquidity traders exiting the ARB market. The Chaikin Money Flow (CMF) for ARB is currently below 0 at -0.20, indicating higher capital flight and signaling potential further price declines.
If a rebound does occur, ARB’s price could potentially rise to $0.99. However, the overall market sentiment and flow of capital will play a crucial role in determining the future price action of the token.
